Many people rely on Social Security income to pay the bills and provide for their basic needs once they’ve retired or can no longer work due to disability. Losing even a small amount of these payments every month could cause significant hardship. The possibility of facing garnishment to cover unpaid debts can become a serious cause for concern. If you receive benefits and have creditors who are aggressively seeking the money they’re owed, it’s important to know if your financial well-being could be at risk. 

When Is Social Security Income Protected?

Unlike regular wages, Social Security income is off limits to the majority of creditors. This means your benefits cannot be garnished to pay for delinquent accounts related to credit cards, medical bills, or personal loans. Should a creditor attempt to freeze your bank account, your financial institution is required to protect up to two month’s worth of Social Security payments that have been deposited.

What Kinds of Debt Can Be Garnished? 

If the creditor you owe money to is the U.S. government, your Social Security income isn’t entitled to the same protection. Therefore, garnishment orders might be issued if you are in arrears for alimony or child support, owe back taxes, have an obligation to repay student loans, or have been ordered to pay restitution from a civil judgment. Generally, up to 15% of your benefits can be garnished, as long as you’re left with at least $750; however, there are exceptions to this depending on the reason for garnishment.

What Should You Do if You’re Facing Garnishment?

If you have outstanding debts with creditors who are trying to collect payment, it’s in your best interest to get legal counsel. An attorney might be able to help you stop an impending garnishment by negotiating other arrangements to pay your debt back. If you feel your benefits have been improperly garnished, they will help determine if you have a valid argument to dispute the order. 

When you live on a limited Social Security income, it’s essential to do what you can to avoid a reduction in benefits. Backed by more than three decades of legal experience, Harry B. Zornow can help explore your options for preventing garnishment. Using his extensive knowledge of bankruptcy and Social Security law, attorney Zornow has helped numerous Hamilton, OH, residents evade creditor harassment and regain financial freedom. Call (513) 737-9770 to request a consultation, or visit his website to learn more about the services he provides.